If you had read my Part 1, from last week’s column great! If not go back and read part 1 first!
The U.S. is officially in its longest expansion, breaking the record of 120 months of economic growth from March 1991 to March 2001, according to the National Bureau of Economic Research.
This is the longest expansion of our economy since 1854, now some 127 months as of this month and it shows no signs of stopping. Unemployment is the lowest since 1969, although our economy has been expanding at a slower pace, it’s still chugging along (but unfortunately not for everyone).
As per an article by Yun Li for CNBC back in July 2019 and CNBC’s John Schoen contributing reporter, the cumulative total of quarterly GDP growth figures equals 25 percent, far lower than previous booms.
While the unemployment rate has dropped from a peak of 10 percent in October 2009 to 3.6 percent in May 2019, the lowest since 1969, job growth has been relatively slower than during other postwar recoveries.
However, our housing supply (currently at 5.3 months, normal is 6-7 months) is the lowest since the 1980s since the National Association of Realtors started to track housing inventory as per Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors.
I am quite positive things could improve for many, especially those who want to purchase their own home one day with more creative rules-based policies to assist those that are renting who have adequate income, debt/income ratios, and credit.
Although some civilizations (I don’t call them empires because of the true long term civilizations, although few, that have lasted thousands of years, and are very different) I believe had a more progressive way of looking at life and their people and you can see why they succeeded so successfully?
Was it total scheming by dictators by controlling the masses like China and Russia or past “empires” have done or did some really have concern and care for their citizens in a different more beneficial and positive fashion for the betterment of their society?
Here is another link to check out and it will provide a greater understanding as to how we can succeed in the future by caring and changing our attitudes and our policies through some trial and error!
Here is another link from Forbes magazine from Feb. 14, 2017, that will provide additional insight into how we can fix what is wrong with our country and probably be the true leaders of the “free world” that we have always been (but without our conquering attitudes and actions) and at the same moment in time also realize how so, so young our empire truly is:
Since approximately 35 percent of our population is either in a rental situation, living at home with mom and/or dad or with a relative or unfortunately and sadly homeless, what would happen if we could figure out how to increase our supply of housing at a much quicker pass?
How much more would this increase and elevate the U.S. economy in creating and contributing to an even more spectacular solid, history breaking Dow 50,000 and S & P 10,000 while reducing our National Debt?
What additional and creative state and federal government partnerships, private equity, hedge funds, etc. could be formulated, with more lotteries, (and sweat equity by the prospective winners of homes to assist in building their places, as “Habitat for Humanity” requires).
I have seen and experienced this as a member and participant of “Habitat for Humanity” helping to build and rebuild homes for several years in New Orleans and other states, through the National Association of Realtors “Build Day” during our yearly conventions. One hundred fifty of us volunteers (out of 18,000+ convention-goers) have gone out with the purchaser to do the job of enabling another family to own a home.
Builders need to step up their game and produce much faster and new techniques need to be figured out and applied, thereby trying to satisfy demand, which will be increasing as the additional Generation X, Y, and other new “labeled” groups launch and pour into our housing market. We have no time to lollygag and play around, we need action now.
Come back to read Part 3 in my next’s week’s column!
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist. Just email or snail mail (regular mail) he with your ideas on future columns with your name, email and cell number and he will call or email you back. For a consultation, he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com to answer any of your questions or concerns.